According to several luminaries in the field, whales still boast significant control of the market despite more and more users joining the decentralized world.
The effect of massive whale traders in the cryptocurrency market has always been a talking point with debates raging on whether it was fair that a few traders could amass enough power to change the fate of a cryptocurrency’s price. This fear was again brought to light recently when a study conducted by two professors in Texas claimed that a single whale trader actually caused the famous Bitcoin bull run in 2017.
On the back of that research, several other examinations have also been conducted to study the nature of these whales and if they still impose such a tremendous amount of power in the crypto world. According to several luminaries in the field, whales still boast significant control of the crypto market despite more and more users joining the decentralized world.
That was evidenced by a new report published by SFOX, a cryptocurrency platform that also took into account the statements made by Popular crypto proponents such as Frank Weert and Mati Greenspan.
Weert, the co-founder of cryptocurrency data aggregator Whale Alert, had stated that:
“Bitcoin started with a few people. So, the biggest chunk of coins is going to be in the hands of people who started it. Eventually, the distribution of BTC is going to hopefully level out a bit more and there’s going to be, hopefully, fewer whales.”
The Whale Alert official also pointed to the famous Bitcoin address that held 80,000 BTC, a holding of a whopping $735 million. Some analysts predict that if the assets in that address were ever to be sold, it would “crush the cryptocurrency market.”
The data aggregator has also spotted that in-between October 21st and October 22nd of this year, a significant number of high value transactions correlated to Bitcoin’s price slump of almost 20 percent. Mati Greenspan, the Chief Market Analyst at eToro, did not agree with the claims that a single whale was controlling the market by saying:
“I think that [the Bloomberg report] is emphatically false. We had so many new clients that we went into emergency reactive mode.”
The original report was created by Professor John Griffin and Professor Amin Shams, who claimed that the majority of the transactions relied on Tether, the world’s largest stablecoin. They were confident in stating that instead of thousands of investors moving the price of Bitcoin in 2017, it was just one large trader. John Griffin added:
“Years from now, people will be surprised to learn investors handed over billions to people they didn’t know and who faced little oversight.”